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Corporate strategy is the strategy a firm uses to compete across multiple businesses. Many small firms want to grow by entering new businesses. Many large firms already are in multiple businesses, e.g. a photo camera producer selling also sunglasses.
We developed this course to help you make good corporate strategy decisions. Of the many decisions a firm has to make, corporate strategy decisions are among the most consequential. We will look at these key corporate strategy decisions:
- Diversification: How and which businesses should your firm enter?
- Divestiture: How and from which businesses should your firm exit?
- Corporate HQ: How should we organize corporate headquarters to create value across the different businesses?

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Corporate Advantage

Welcome to week 1! This week, we introduce corporate strategy and its main goal: corporate advantage. To deepen our understanding of corporate strategy, we compare it with business strategy. We also cover sum-of-the-parts analysis, an often used technique to value multi-business firms, and we discuss how it relates to corporate advantage.